Impact of Automobile Industry on Indian Consumers


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Impact of the Automobile Industry On Indian Consumers

From early 1769, the history of automobiles began with the development of steam-powered automobiles, which are capable of human transport. Further, in the year 1806, the first car was developed, which was powered by internal combustion engines being run on fuel and gas. Soon, after this many other inventions were done by Karl Benz and Gottlieb Daimler and Wilhelm MayBach, which have drifted the automobile industry into the new world (Fuxman, 1999). There are many nations, who are manufacturing and dealing in automobiles, however, the three nig countries, which are highest in automobile manufacturing are USA and Canada, Japan and Germany. The largest automakers in the USA are General Motors, Chrysler and Ford. These three are being regarded as the Detroit three. These big three companies are being distinguished by their size, geography as well as business model. Most of their operations are unionized i.e. United Auto Workers and Canadian Auto Workers, which results in a higher amount of labour costs as compared to other multinational automakers. General Motors, Chrysler and Ford were the largest in the world just for a while, however, due to competition in the market they have lost their position (Anderson and Anderson, 2010). Two of them are still in the mainstay of the top five. Japan is considered the leader at producing small and more efficient cars. The automakers of Japan are Toyota, Nissan and Honda and they are regarded as best among all other brands. Because of the oil crisis in the year 1973, the Vehicles of these companies were brought to the forefront. This can be well attributed to the instance that the Honda Civic was being regarded as far better or in other words superior than the American competitors such as the Ford Pinto and Chevrolet Vega. On the other hand, the automobile industry of Germany is one of the largest in providing employment opportunities to the local people. Further, the nation has the largest share, say around 29% of passenger car production in Europe (Kumar and Yamaoka, 2007).

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